Mothercare, the sickly baby and child specialist, has spooked investors by going cap in hand to the banks for the second time in as many months.
In a further blow to investor confidence, Mothercare recently levied a 2.5pc charge to the invoices of around 500 of its UK suppliers to help “support the turnaround in UK profitability”. It has also stretched out its payment time for bills to 90 days.
Last week, a letter to suppliers from Matt Smith, the finance director, said: “We need to move to a more commercial agreement to secure Mothercare as a strong business for mutual benefit.”
Mothercare aims to close a further 20 loss-making shops by next spring, under plans to reduce its 220 sites in Britain to a “lean” 200.
The company declined to comment.
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